Shriniwas K (-) (65 Points)
25 December 2018Hello,
A polyhouse is a structure made of steel/GI pipes with plastic covering - and farm produce is grown inside. While the plastic has a life of 4-5 years and is changed whenever necessary, the steel structure has a 50 to 60+ years, or even more, life (it is galvanised, and fixed in the ground - immovable structure, unless dismantled).
The query is - if a farmer sells such a polyhouse, used by him for over a decade, what sort of tax would the sale attract ?
Thanks.
Shriniwas.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170108 Points)
Replied 26 December 2018
If used structure is sold there would not be any gain or profit !!
Rakesh Bandal
(Self Employed and Agriculture)
(1349 Points)
Replied 26 December 2018
@ Rambhia Sir,
Sir can you please explain in detail, to understand it correctly
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170108 Points)
Replied 26 December 2018
Evaluate its Cost of aquisition and sell price..... (only for used items)
Shriniwas K
(-)
(65 Points)
Replied 30 December 2018
Thank you for the reply.
So just to confirm, the structure is not considered a capital asset ? - thereby the sale being a capital gain/loss ?
Also, would depreciation be considered to calculate profit / loss ?
And with or without depreciation, if there is profit - under which head will it be considered ?
Thank you.
Shriniwas.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(170108 Points)
Replied 30 December 2018
If depreciation has been availed, and if there is any gain it will be ST capital gain.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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